The British
one pound coin has been called all sorts of
nasty things since it was introduced in 1983.
Among its nicknames are "the Maggie" after then
Prime Minister Margaret Thatcher under whom the
coin was introduced, and the "round pound." The
problem with an estimated one in 40 of the coins
now in circulation is that they can be called
"counterfeit!"

The intension of replacing the one pound bank
note with a circulating coin was primarily to
ensure the currency of that value would last
longer in circulation, while reducing
manufacturing costs. The bank note typically
wore out in between six and 18 months, while the
coin has been estimated to last between 20 and
40 years. Since at that time bank notes rather
than coins were the primary target of
counterfeiters the concerns now being voiced
were not considered to be a major concern in
1983.

In recent decades coins have become increasingly
popular worldwide as a substitute for what had
been the lowest denomination bank note in many
countries. This has increased the interest in
counterfeiting coins as well, since such a
denomination could now be worth the trouble of
faking. This has been found to be true not only
in Great Britain, but in Canada, the European
Union, and other places where a coin rather than
a bank note now circulates in placement of what
we in the United States would consider it to
liken to the dollar denomination.

The British Royal Mint periodically samples
coinage in circulation in Great Britain. The
previous sampling indicated one in 50 one pound
coins was bogus, but the new sampling showed an
alarming increase to one in 40 coins, according
to the Jan. 30 issue of Banking Times.

According to the Banking Times article, "Faked
coins could therefore account for £37.5 million
[about $75 million U.S.] of cash in
circulation," adding, "It also represents a 26
percent rise on 2007."

The BRM sampling included 15,481 £1 coins found
at 31 banks and post offices throughout Great
Britain. Since the sampling was taken the mint
has been working with banks, the post office,
police, and the vending industry to rid the
system of as many counterfeits as possible. This
includes offering the public detailed
information regarding the designs and
specifications of genuine £1 coins, information
that appears on the BRM Web site.

Banking Times reported the majority of the
counterfeit coins will not work in vending
machines or in counting machines at banks. Since
the coins circulate, this is of little comfort
to the average consumer that might either get
one in change or try to use one, only to have it
confiscated without reimbursement if the party
receiving the bogus coin detects the coin's lack
of authenticity.

As the Banking Times article states, "Consumers
are being reminded that it is a criminal offence
to use a counterfeited coin, so someone
discovering a forgery should not attempt to
spend it."

British £1 coins do have some security features
that make them more challenging to reproduce
than appear on lower denominations. Primary
among these features is an incused lettered edge
superimposed on a reeded edge.

The proliferation of counterfeit coins in recent
years may encourage more countries to use
holographic type designs and color enhancement
on circulation coinage as well as on
non-circulating legal tender commemoratives,
which is where most of this type of technology
is now applied.